14 Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: First Quarter Second Third Fourth Quarter Quarter Quarter Total Sales revenue Cost of goods sold $183,000 $213,000 $223,000 $273,000 $892,000 128,100 149,100 156,100 191,100 624,400 Gross profit 54,900 63,908 66,900 Selling & administrative expenses 81,900 267,600 18,300 21,300 Net income $ 36,600 $ 42,600 22,300 $44,600 27,300 89,200 $ 54,600 $178,400 ces Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 10 percent. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Complete this question by entering vour an